Correlation Between Aspire Mining and Kalgoorlie Gold
Can any of the company-specific risk be diversified away by investing in both Aspire Mining and Kalgoorlie Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aspire Mining and Kalgoorlie Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspire Mining and Kalgoorlie Gold Mining, you can compare the effects of market volatilities on Aspire Mining and Kalgoorlie Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aspire Mining with a short position of Kalgoorlie Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspire Mining and Kalgoorlie Gold.
Diversification Opportunities for Aspire Mining and Kalgoorlie Gold
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aspire and Kalgoorlie is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aspire Mining and Kalgoorlie Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalgoorlie Gold Mining and Aspire Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aspire Mining are associated (or correlated) with Kalgoorlie Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalgoorlie Gold Mining has no effect on the direction of Aspire Mining i.e., Aspire Mining and Kalgoorlie Gold go up and down completely randomly.
Pair Corralation between Aspire Mining and Kalgoorlie Gold
Assuming the 90 days trading horizon Aspire Mining is expected to generate 1.07 times more return on investment than Kalgoorlie Gold. However, Aspire Mining is 1.07 times more volatile than Kalgoorlie Gold Mining. It trades about 0.09 of its potential returns per unit of risk. Kalgoorlie Gold Mining is currently generating about 0.0 per unit of risk. If you would invest 8.00 in Aspire Mining on October 21, 2024 and sell it today you would earn a total of 18.00 from holding Aspire Mining or generate 225.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspire Mining vs. Kalgoorlie Gold Mining
Performance |
| Timeline |
| Aspire Mining |
| Kalgoorlie Gold Mining |
Aspire Mining and Kalgoorlie Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspire Mining and Kalgoorlie Gold
The main advantage of trading using opposite Aspire Mining and Kalgoorlie Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspire Mining position performs unexpectedly, Kalgoorlie Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kalgoorlie Gold will offset losses from the drop in Kalgoorlie Gold's long position.| Aspire Mining vs. Super Retail Group | Aspire Mining vs. Ainsworth Game Technology | Aspire Mining vs. Hutchison Telecommunications | Aspire Mining vs. Farm Pride Foods |
| Kalgoorlie Gold vs. Sports Entertainment Group | Kalgoorlie Gold vs. Southern Cross Media | Kalgoorlie Gold vs. Aspire Mining | Kalgoorlie Gold vs. M3 Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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